Oz Buzz

“Only when the tide goes out you discover who has been swimming naked.” 

–Warren Buffet

Today’s Issue:

  • GREAT HOT PROPERTIES (1x 7.1% Cap, 1x Owner carries)
  • WHAT WE LEARNED WITH YOUR HELP
  • QUESTIONS, QUESTIONS
  • THE REVENGE OF THE LITTLE PEOPLE
  • INFLATION/DEFLATION
  • LAURENTIAN BANK FIRES ALL TELLERS – IMPLICATIONS
  • POSITIVELY PARKING

WHAT WE LEARNED WITH YOUR HELP

In a 1995 movie a computer – robot came to life. His name was Number 5. He said “I AM Number 5 and I’m alive” and his favourite words after that were “I need input!” Well I am not a robot, but I really understand him, because with your INPUT we feel comfortable proceeding with the OzBuzz Blog & OzCasts as is in many areas and make changes in a few others.

Here are some of the things that you said:

  1. How do you feel about the Q&A?
    1. 93.2% liked it.
  2. How do you feel about Ozzie’s comments?
    1. 96.9% liked it (blush).
  3. How do you feel about the Books section?
    1. 58.2% liked it.
  4. How do you feel about the Hot Properties section?
    1. 72.8% thought it to be important or very important.
  5. How do you feel about the Numbers?
    1. 98.% like them.
  6. On the question about the separation on the podcast and blog (which you thought last year was very necessary)
    1. 45% liked the split while 43.9% didn’t care.
  7. Do you prefer the OzBlog or OzCasts?
    1. The OzBlog rated at 61.1% but “I love them both” rated at 43.6% – so together pretty good.

Only 46% of you enjoyed the Live Life Large motivational cards AND while no one disliked them, 50% do not read them. My Economic comments rated highly at 98% and my International comments clocked in at 92%. Finally, “Why do we let them” rated 81.2%.

We then had 412 comments & suggestions, most of them very positive. The suggestions ranged from “Keep it free” to “I’d rather pay for it and get it weekly!” (Ha-Ha) – no worries, we will always keep it free.

Some suggestions we will implement in the next few months are:

  1. Attach a total of the list of books we recommend.
  2. Do more personal podcasts on the economy and real estate markets.
  3. Identify the OzBuzz in capital letters in the subject line in mail outs.
  4. Go back to Major Point.

We were honoured to read a lot of the comments because we know your time is valuable. For the regular “email questions” you may have noticed an increase in response time. It is simply the sheer volume of questions. If I can, I answer all real estate questions asap. All others may not get a timely answer.

INFLATION/DEFLATION

Sooooo many questions on inflation and whether or not it’s 2%. I appreciate any and all comments and most of the opposing positions that some of you took are also defensible. However, my whole premise of constantly increasing real estate values (and other hard assets) is based on the premise that we will never pay back our debt (the US just announced its first $1 TRILLION dollar deficit ever!), therefore we need to create the money to run governments, the ever increasing demands of an ignorant public and the debt!

It is then most likely, that – as we have for 60 years (yes, we have been printing money for 60 years) – the creation of cash out of thin air (call it bonds, QE, or whatever) will continue. The ‘QE’, ‘money printing’, ‘kicking the debt forward’ etc. always settles back in higher prices for things of real value. (The attempt at QT was likely thwarted last December with a crash.)

The excess money goes to the wealthiest corporation and individuals first. They use a lot of it to retire their personal debt, buy back the company stock or other useless stuff (for us), but the sheer volume of money creation flows through and eventually into hard assets – like real estate. PERIOD! It always has, it will continue! That’s why in 1961 the average home price was $16,500 in Vancouver and today it is $1.6 million.

No other reason but the creation of money … and not creation at 2%.

To those of you that argued that we are in a deflation – please note and be surprised: I don’t necessarily disagree! But these are not the 30s with bread lines, these are the innovated, crazy, nutty 2020s. We have inflation and deflation at the same time! Milton Friedman said “Inflation is primarily a monetary phenomenon” as we have quoted him for 25 years. The excess money created settles in hard assets, and thus it is inflationary. However, our commodity prices, which we export mostly, are dependant on world markets and thus it is an economic issue. So yes, deflation in commodity prices is possible at the same time as inflation in hard assets occurs. And yes, I’ll make that a podcast.

LAURENTIAN BANK STOPS TELLER SERVICE

A little reported item that show how the world goes: 350 jobs were lost to automation of? A bank! Laurentian closes all tellers. As we have predicted, we will have a cashless society, restaurants in the US stop taking cash…and now even you bank wont! What’s next? Grocery store checkout tellers…out? Oh, started already…

Major Point: If you are job dependent get off the train now and ‘retrain’ yourself. If you are not on the train – learn to deal with it…or you’ll be left at the station of: Huh?

STRESS TEST REDUCED, OR?

Good news? For the first time in three years, the Bank of Canada has lowered its five-year qualifying mortgage rate! Great, right? Weeell, it went from 5.34 per cent to 5.19 per cent. No big deal. No deal… The good news is that you can get a great 5-year rate around 2.7% (if you did not just have your TV repossessed). The bad news still is – you must qualify as if you  paid 5.19%. BUT, good news: You are immediately qualified to pay 26% interest at Costco or Visa. Madness!

QUESTIONS, QUESTIONS

Q: Who is David Rosenberg?
A: David Rosenberg is a chief economist for Gluskim Sheff who also writes for the Globe & Mail. He has strong personal views which include that eventually we will have to create a 100-year bond at a good rate, roll in all the bad debt and that way get out of the debt. You MUST look him up!

Q: My neighbour keeps parking on my side of a shared driveway. Every night I let some air out of his tires. The revenge of the little man!
A: Hell no! That is a personal vendetta against an equal. You’re not the little man in this situation. The revenge of the little people means that you’re impotent working against Nike, the governmentparking meters or whatever and you do a small thing – perhaps only known to you – to “get even”. (Yes, I realize it’s a joke. If it isn’t get help!)

TALKING ABOUT PARKING
I have not been complimentary of the rates that park houses and city meters charge. I think it is madness to have parking meters at hospitals or at family parks. There should be a four-hour free zone at all hospitals and/or visitor free parking passes. Parks should also be free. Here again – we talk affordability and the poorest of all have to pay outrageous fees just to go outdoors or visit sick relatives. I could go on and on but today I want to share with you some happiness about the City of Vancouver’s decision to reduce street parking fees close to community centres (like Coal Harbour) and even on Burrard street from $3 per hour to $1 per hour! I like it in particular where you are often forced to pay $20 for four hours because other options are not available. I also like the cities introduction of a four-hour rate after 6pm. That makes eminent sense and I salute the city.

Note: However, the meter does not switch over exactly at 6 pm as the esteemed Michael Geller and myself found out. You must wait until at least 6:10 before the four-hour option becomes available.

Q: Hong Kong Riots – will there be a lot of people coming back to Canada from Hong Kong?

A: One of the leading realtors on the west side told me on Sunday (the 14th) that anecdotally his office has sold 6 properties to Hong Kong Chinese and that their Cantonese speaking agents are in much higher demand. Okay, okay, this is entirely anecdotal, but I would love to hear from more of you in this regard. The fact that things seem to get worse in Hong Kong may indeed motivate more Hong Kong Chinese with a Canadian passport than before,

Q: Huawei & Google – You mentioned that Google has problems with China, in fact Google is being accused of writing code for the Chinese military. Also, President Trump & China will do a trade deal before the fall so I would still buy a Huawei phone.
A: Interesting. Thanks for the note.

Q: Is Canada still desirable for foreigners to invest?
A: In our Land Rush & Outlook conferences I quoted the International Investor survey from www.afire.org for several years. This survey – measuring foreign real estate investment – rated Canada as #3 safest, after Germany and the US. Their 2019 rating will likely be posted in September. In the meantime, Toronto is rated #9 most stable and secure city in the world, tied with Seattle. However, most of the foreign money goes to New York. Go figure!

From: www.afire.org

TENANT FROM HELL

Six of you shared horror stories, three of which related to the fact that tenants not only damaged their property, but that they managed to get double their deposit back, which is the landlord’s own fault.In British Columbia Landlords note: If you do not lodge a complaint against the tenant within 10 days after their departure, they are owed double the deposit – no matter what he may have done to your suite or house. The rules for landlords are tightening throughout Canada and the United States. As a landlord understand that 95% of the tenants are good, but you need to watch out for the 5% that are not, understand how well they know the laws and protect yourself.

HOT PROPERTIES

Big pockets, big return
Cowichan Bay
High CAP Rate Commercial Property
Mixed-Use Property with Marina with boats and float homes, Residential, Retail and Mini-Storage.
Listed CAP rate of 7.12%
Gross Revenue $837,852
Seller willing to VTB for retirement
Majority of boats are long-term tenants
Lots of latent potential
$8,300,000 for all piers but can purchase individually as well.

Small pocket great buy:
Cheaper than rent
New Westminster
Put 10% down…monthly payment $1,380

$330,000, 2-bedroom condo

Chilliwack.
Renovated condo reduced from $220,000 to $190,000

Owner wants out:
Victoria, 2-bedroom 2 bath new condo. Developer will carry $20,000 2nd mortgage and take a $15,000-price reduction from $399,000

Abbotsford
Owners paid $550 in 2016, now listed at $525,000
4 bedrooms, 3 bath, 1560 soft. Rents for $2300 per month.
Cashflow!

AUDIOBOOK – LOOK UP PROMO CODE

NEW: You can buy both of Ozzie’s books and Ozzie’s 25 Money Making Principles on USB and the complete Land Rush audio on USB by ordering them here https://jurock.com/products/

WANT TO PARTICIPATE?

Go to www.realestatetalks.com – Some 2,500 members (47,009 posts) talk real estate. Ozzie created this bulletin board in 1998!
If you are in a real estate related industry of any sort (realtor, appraiser, lawyer, home inspector, etc.) list yourself in Ozzie’s free British Columbia real estate directory at www.bcred.ca.

OZZIE’S YOUTUBE CHANNEL

You can watch all videos and podcasts on my YouTube channel at https://www.youtube.com/jurockvideo. It is a great way to check on what I said 10 years ago.

RADIO

On air with Michael Campbell on fabulous MONEYTALKS every Saturdaysometime between 8:30AM – 10 AM. The Hot Property that we discuss there, is available by subscribing to the Oz Buzz Dispatch at Jurock.com

OZBUZZ.CA

Why subscribe if I can just go to the website at Ozbuzz.ca? Hot properties and the latest podcasts are DISTRIBUTED TO SUBSCRIBERS FIRST– posted 2 weeks later on website.

HAVE A QUESTION OR COMMENT?

You can reach me at info@ozbuzz.ca with all of your questions, comments and concerns regarding the Oz Buzz publication.

LIVE LIFE LARGE

The God within:
ENTHUSIASMI am enthusiastic about being aliveI am enthusiastic about my family, my community, my businessI will live my life with passion

I will grow into my future best.


Look up all of my “Grow into your future best” cards at: www.commitperformmeasure.com

Oz Buzz Podcast

Disclaimer

Please note that any response to any email or any invitation to any meeting is accepted on the understanding that “Jurock Real Estate Insider (JREI)” or the “Jurock Case Real Estate Action Group (JCREAG)” as the case may be, are not responsible for any result or results of any action or actions taken in reliance upon any information contained in this posting or meeting, nor for any errors contained therein or presented thereat or omissions in relation thereto. It is further understood that the said JREI and JCREAG, as the case may be, do not, pursuant to this posting, purport to render legal, accounting, tax, financial, planning or other professional advice. The said JREI and JCREAG may or may not own properties discussed at meetings or receive or not receive referral fees at any meeting you may attend as a result of this posting or invitation. The said JREI and JCREAG, as the case may be, hereby disclaim all and any, liability to any person, whether a purchaser of any offering, a reader of any offering, or, otherwise, arising in respect of this postings and of the consequences of anything done or purported to be done by any such person in reliance, whether whole or partial, upon the whole or any part of the contents of this postings. If you respond to any posting JREI and JCREAG fully expect that you get independent legal/tax/investment/mortgage advice as the case may be.

Subscribe

Subscribe to the FREE Hot Properties and Oz Buzz:

(You’ll get Oz Buzz 2 weeks before it’s posted online)

Get 25% Off JUROCK REAL ESTATE INSIDER PRODUCTS when you sign up for Oz Buzz!

Product Special